Journal of Financial Services Research

, Volume 33, Issue 3, pp 147–162 | Cite as

Does Bancassurance Reduce the Price of Financial Service Products?

  • C. Charles OkeahalamEmail author


I assess the impact of bancassurance on the price of retail financial services. I find that service fees in a product bundle increase less than proportionally to the number of services; that an increase in the number of clients in each product bundle market reduces fees by 1.5%; that the degree of competition in the markets of each bundle also reduces fees; that premium products have higher average costs; and finally, that cross-holdings reduce prices by about 5% and bancassurance reduces prices by just over 6%. The price reduction declines if both strategies are combined.


Bancassurance products bundles prices 

JEL Classification

D01 G2 L11 L23 



This paper is part of the Southern Africa Financial Institutions Industry Structure (SAFIIS) Project funded under BARDA-Grant 017/2002–2008. I am grateful for the comments of participants at the SAFIIS Workshop, Johannesburg 21–22 June 2006. I wish to acknowledge Econometrix (Pty) Ltd, South Africa for allowing me access to their Sector Star, Econosnaps, and Finance Monitor database products. I am grateful for the research assistance of John Mang’ana, and to Fabian Ogbonna and Bongiwe Kanzi for their efforts in the cleaning and cross-validation of the data. Finally, I wish to thank the Editor, Stijn Claessens, and an anonymous reviewer for his/her insightful comments. The usual disclaimers apply.


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Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  1. 1.Benefit Advisory ResearchGroup AGHBenmore, JohannesburgSouth Africa
  2. 2.Sandton, JohannesburgSouth Africa

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